A bitter feud that has divided France’s luxury goods industry took a new turn yesterday when it emerged that LVMH was being investigated over its acquisition of a stake in Hermès.

A magistrate will look into alleged irregularities amid claims by Hermès that LVMH kept quiet for months about the fact that it was buying Hermès shares. The information could have boosted the smaller group’s share price.

Hermès regards LVMH’s 22.6 per cent stake as a hostile move, but LVMH denies that it is planning to launch a takeover bid.